1. stocks give you a small piece of ownership in the company.
2. options are just contracts that give you the right to buy or sell the stock at a specific price by a specific date.
3. Options, like futures contracts, have expiration dates, while stocks do not.
4. Owning stock of a company also entitles you to receive a respective percentage of the paid out dividend (if the company pays any dividend, that is).
5. An option does not entitle you to vote or receive dividends.
6. Options are derivative instruments based on stocks, funds, currencies, commodities, futures or index.
7. When a stock moves 1%, its stock options could move by as much as 10%.
8. Two types of options are calls and puts.
9. Trading options is more like betting on horses at the racetrack.
2. options are just contracts that give you the right to buy or sell the stock at a specific price by a specific date.
3. Options, like futures contracts, have expiration dates, while stocks do not.
4. Owning stock of a company also entitles you to receive a respective percentage of the paid out dividend (if the company pays any dividend, that is).
5. An option does not entitle you to vote or receive dividends.
6. Options are derivative instruments based on stocks, funds, currencies, commodities, futures or index.
7. When a stock moves 1%, its stock options could move by as much as 10%.
8. Two types of options are calls and puts.
9. Trading options is more like betting on horses at the racetrack.
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